The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3678 with a target of 1.4300 – 1.4800. A buy signal: the price holds above 1.3678. Stop Loss: below 1.3620, Take Profit: 1.4300 – 1.4800.
- Alternative scenario: Breakout and consolidation below the level of 1.3678 will allow the pair to continue declining to the levels of 1.3550 – 1.3427. A sell signal: the level of 1.3678 is broken to the downside. Stop Loss: above 1.3730, Take Profit: 1.3550 – 1.3427.
Main scenario
Consider long positions from corrections above the level of 1.3678 with a target of 1.4300 – 1.4800.
Alternative scenario
Breakout and consolidation below the level of 1.3678 will allow the pair to continue declining to the levels of 1.3550 – 1.3427.
Analysis
The ascending fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (5) of 5 forming as its part. The third wave of the smaller degree 3 of (5) appears to have formed on the daily chart. A local correction seems to have completed as the fourth wave 4 of (5), with wave c of 4 fully formed as its part. Apparently, the fifth wave 5 of (5) has started developing on the H4 time frame, with the first counter-trend wave i of 5 of smaller degree unfolding as its part. If the presumption is correct, the USD/CAD pair will continue to rise to the levels of 1.4300 – 1.4800. The level of 1.3678 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3550 – 1.3427.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of USDCAD in real time mode
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